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Fair Value Measurements
 9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements
NOTE 16. Fair Value Measurements
3M follows ASC 820, Fair Value Measurements and Disclosures, with respect to assets and liabilities that are measured at fair value on a recurring basis and nonrecurring basis. Refer to Note 17 to the Consolidated Financial Statements in 3M's 2023 Annual Report on Form 10-K for a qualitative discussion of the assets and liabilities that are measured at fair value on a recurring and nonrecurring basis, a description of the valuation methodologies used by 3M, and categorization within the valuation framework of ASC 820.
The following table provides information by level for material assets and liabilities that are measured at fair value on a recurring basis at September 30, 2024 and December 31, 2023.
Fair Value atFair Value Measurements Using Inputs Considered as
Level 1Level 2Level 3
Description (Millions)September 30,
2024		December 31,
2023		September 30,
2024		December 31,
2023		September 30,
2024		December 31,
2023		September 30,
2024		December 31,
2023
Assets:
Available-for-sale:
Marketable securities:
Asset backed securities
$12 $— $— $— $12 $— $— $— 
Foreign corporate debt
32 — — — 32 — — — 
U.S. government securities
41 — 41 — — — — — 
Corporate debt securities459 — — — 459 — — — 
Commercial paper390 — — — 390 — — — 
Certificates of deposit/time deposits98 46 — — 98 46 — — 
U.S. treasury securities209 — 209 — — — — — 
U.S. municipal securities24 24 — — — — 24 24 
Solventum common stock2,396 — 2,396 — — — — — 
Derivative instruments — assets:
Foreign currency forward/option contracts 46 84 — — 46 84 — — 
Liabilities:
Derivative instruments — liabilities:
Foreign currency forward/option contracts 50 39 — — 50 39 — — 
Interest rate contracts68 88 — — 68 88 — — 
The Company had no material activity with level 3 assets and liabilities during the periods presented.
Solventum Corporation common stock is carried at stock prices that are readily available from active markets and are representative of fair value. 3M classifies this investment as Level 1. It is included within other assets on the Company’s consolidated balance sheet.
In addition, the plan assets of 3M’s pension and postretirement benefit plans are measured at fair value on a recurring basis (at least annually). Refer to Note 14 to the Consolidated Financial Statements in 3M's 2023 Annual Report on Form 10-K.
Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis: 3M had no material measurements at fair value on a nonrecurring basis of applicable assets or liabilities for the third quarter and first nine months of 2024 and 2023.
Fair Value of Financial Instruments: The Company’s financial instruments include cash and cash equivalents, marketable securities, accounts receivable, certain investments, accounts payable, borrowings, and derivative contracts. The fair values of cash equivalents, accounts receivable, accounts payable, and short-term borrowings and current portion of long-term debt approximated carrying values because of the short-term nature of these instruments. Available-for-sale marketable securities, in addition to certain investments and derivative instruments, are recorded at fair values as indicated in the preceding disclosures. To estimate fair values (classified as level 2) for its long-term debt, the Company utilized third-party quotes, which are derived all or in part from model prices, external sources, market prices, or the third-party’s internal records. Information with respect to the carrying amounts and estimated fair values of these financial instruments follow:
September 30, 2024December 31, 2023
(Millions)Carrying ValueFair ValueCarrying ValueFair Value
Long-term debt, excluding current portion$11,319 $10,449 $13,088 $11,859 
The fair values reflected in the sections above consider the terms of the related debt absent the impacts of derivative/hedging activity. The carrying amount of long-term debt referenced above is impacted by certain fixed-to-floating interest rate swaps that are designated as fair value hedges and by the designation of certain fixed rate Eurobond securities issued by the Company as hedging instruments of the Company’s net investment in its European subsidiaries.